OMGI revamps Generation portfolios after Ventre departure

Old Mutual Global Investors has revamped its Generation portfolios, closing two funds, changing the charging structure and bringing in new managers after John Ventre’s departure earlier this week.

The changes to the range have been made to adapt the funds to the new pension freedoms world, says OMGI. The range of five funds has been cut down to three, while the names of the funds have also been changed to reflect new target returns.

From 1 October the portfolios will continue to target both capital growth and income generation but the explicit income targets on the funds will be removed.

The portfolios will now also directly invest in income-generating stocks rather than solely in funds managed by third-party fund managers.

As a result of this change the annual management charge on the funds will rise, going from 0.5 per cent to 0.6 per cent.

However, OMGI says the ongoing charges on the funds will be reduced to 1.21 per cent compared to the previous 1.24 per cent.

Old Mutual Generation Target 3:4 will be renamed Old Mutual Generation Target 3, while Target 4:4 will be renamed Old Mutual Generation Target 4 targeting returns above the consumer price index of 3 per cent and 4 per cent respectively.

As part of the revamped offering, Old Mutual has also launched the Generation Target 5 portfolio which will target CPI plus 5 per cent.

OMGI will be closing the Generation 3:6 and 4:6 funds, subject to regulatory approval, because of their small size.